How The Ethereum Rally Is Propping Up Large Cap Cryptocurrencies
Data shows the large cap cryptos have been outperforming the others this month so far, thanks to Ethereum’s latest rally.
Ethereum’s Dominance Has Gone Up Over 3.4% During The Past Week
As per the latest weekly report from Arcane Research, the large cap index has observed 28% gains in the month of June so far.
“Cap” here refers to the USD capitalization. Based on the market cap of the various coins in the crypto market, each one can be put into three main “indexes.”
These major categories are the large cap index, the mid cap index, and the small cap index. Ethereum being the 2nd largest crypto in the market obviously belongs to the first class.
The benefit of grouping the different cryptos in the market is that the average performance of the the large, medium, and small coins can easily be tracked this way.
Now, here is a chart that shows the trend in the performance of the indexes and how they compare against Bitcoin over the month so far:
As you can see in the above graph, the month-to-date return of the large cap index has been the biggest so far, currently standing at a 28% gain.
The recent Ethereum momentum has played a major part in the index observing such returns. Since 1st July, ETH has increased in value by more than 50%.
The mid cap and small cap altcoins have also seen strong returns this month as both the indexes have noticed profits of 19%.
Unlike Ethereum, Bitcoin hasn’t had an exceptional time so far, with the crypto sitting at positive returns of about 12% at the moment.
This also means that BTC has been outperformed by the rest of the market. This can be seen in the market cap dominance of the coin registering a decline during the past week:
Ethereum’s percentage of the total cryptocurrency market cap, on the other hand, has improved by 3.4% during the last week.
The stablecoins have also lost some ground in this period, which makes sense as money is being rotated into ETH and other altcoins, fueling their latest uptrends.
At the time of writing, Ethereum’s price floats around $1.5k, up 45% in the past week.Source